Crown Point Announces Results for the Three Months and Year

FOR IMMEDIATE RELEASE
April 30, 2015
CWV: TSX.V
Crown Point Announces Results for the Three Months and
Year Ended December 31, 2014
TSX-V: CWV: Crown Point Energy Inc. (“Crown Point” or the “Company”) today announced its
operating and financial results for the three months and year ended December 31, 2014.
“2014 was a transformative year for Crown Point, highlighted by the expertise and additional resources
gained as a result of the recently completed strategic financing,” said Murray McCartney, CEO of Crown
Point. “In addition to new funds that will enable continued development of our assets in both Tierra del
Fuego and Cerro de Los Leones in 2015, Crown Point will benefit from the diverse and extensive
experience our two new directors bring to the Board.”
Copies of the Company’s audited consolidated financial statements, Management’s Discussion and
Analysis (“MD&A”), and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities
(“NI 51-101”) disclosures for the year ended December 31, 2014 are being filed with Canadian securities
regulatory authorities and will be made available under the Company’s profile at www.sedar.com and on
the Company’s website at www.crownpointenergy.com. All dollar figures are expressed in United States
dollars unless otherwise stated, and M$ means thousands of U.S. dollars.
Since January 1, 2014, the Company:
 Completed both financing tranches pursuant to the Investment Agreement the Company entered into
pursuant to which two strategic investors (the “Strategic Investors”) subscribed for and purchased an
aggregate of 60,000,000 common shares of the Company at an issue price of $0.25 per share for
aggregate gross proceeds of $15 million (the “Strategic Financing”).
 Increased proved and proved plus probable reserves by 39% to 4,771 MBOE and 5% to 6,036 MBOE,
respectively, at December 31, 2014 compared to at December 31, 2013, notwithstanding the sale of
the Company's interests in the El Valle area in 2014.
 Completed a 10 well drilling program consisting of eight development wells and two exploration wells.
 Initiated a further three well drilling program in the first quarter of 2015.
Operational Summary
Tierra del Fuego ("TDF")
Crown Point has placed four of the eight development wells and one of the two exploration wells on
production from the ten well drilling program. Fracture stimulation operations on the remaining drilled
wells are scheduled to start in May 2015. The Company also completed its 4-well recompletion program
in TDF and placed into production two of four well recompletions following fracking to stimulate output.
The Company drilled two exploration wells, the San Luis SLx-1003 and the Puesto Quince PQ.x-1001.
The San Luis well has been placed on production, while log and sample analysis indicate that the Puesto
Quince well is a new pool discovery.
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The Company commenced a program to drill three additional wells on the Las Violetas Concession in the
first quarter of 2015. A table summarizing the program is presented below:
TDF 3-Well Follow-up Program
#
1
2
3
Well Name
LFE-1001
LV-112
SLx-1004
Actual / Anticipated Spud Date
March 2015
April 2015
May 2015
In April 2015, the Company commenced the acquisition of new 3-D seismic in TDF comprised of:
2
o Approximately 50 km on the Rio Cullen concession in northern TDF;
2
o Approximately 52 km on the Angostura Concession located between the Rio Cullen and Las Violetas
Concession to the south; and
2
o Approximately 120 km on the eastern extension of the Los Flamencos gas pool in the Las Violetas
Concession.
Crown Point received formal notification of its inclusion in a New Gas Incentive Program, under which
Argentina provides an incentive for producers to earn higher natural gas prices for production above a
base level. The New Gas Incentive Program will remain in effect until the end of 2017 and is expected to
apply to new production resulting from the TDF development drilling program. Additional details of the
New Gas Incentive Program are disclosed in the Company's most recently filed Annual Information Form.
Cerro de Los Leones
In the Spring of 2014, Crown Point completed drilling and evaluation of the LH x-1 well on the La Hoyada
feature which was suspended pending further evaluation and results from the next phase of exploration
activities.
Integrating the information obtained from the drilling of LH x-1, the Company reprocessed its previously
shot 3-D and 2-D seismic with a focus on the La Hoyada and Vega del Sol areas. The re-processed
seismic is being integrated into an ongoing reinterpretation to fully evaluate the potential in the Vega del
Sol structure which is located to the west of LH x-1.
The Company has entered into an agreement with the Province of Mendoza (the “Agreement”) to
transfer unused work units from Period 1 to Period 2 and thus extend the concession to May 2017 with an
option to extend Period 2, at the Company’s request, for one additional year to May 2018. As part of this
Agreement, the Company will on May 22, 2015 relinquish certain acreage which has been either sterilized
because of environmental considerations or restricted/prohibited access due to the presence of the
European Space Agency’s Deep Space 3 antenna on the Permit or deemed non-prospective by the
Company. The relinquishments will reduce the acreage of the Permit to approximately 100,907 acres and
the remaining work units to approximately 780, thereby reducing the remaining Period 1 expenditure
commitment to $3.9 million which would then be transferred to Period 2. Pursuant to the Agreement, total
Period 2 commitments increase from $750,000 to $4.6 million plus one exploration well.
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Outlook
The Company anticipates the following activities to occur during the remainder of 2015:

Complete remedial work at LF-1028 during the second quarter of 2015 to evaluate the Springhill
interval, followed by completion and testing of the well

Commence a TDF fracture stimulation program during the second quarter of 2015, which includes
LFE-1003, PQ x-1001 and, if necessary, LF-1029, LFE-1004, LF-1028 and LFE-1001

In the fourth quarter of 2015, Crown Point plans to re-enter and retest two older wells drilled by YPF.
Vega del Sol x-1, drilled in 1995, was successfully completed and flowed oil from the Chachao
formation which produced oil at rates between 250 and 350 bbls of oil per day. Vega del Sol x-3,
drilled in 2002, was completed and flow tested gas from the shallow Neuquén Group sandstones.
Well logs and sample descriptions for both wells also indicate the potential for bypassed oil pay in the
Neuquén Group.

Evaluate the viability of drilling a well on either Rio Cullen or Angostura or on both of the concessions
in the fourth quarter of 2015 based on the interpretation of the 3-D seismic programs. The seismic
survey at Los Flamencos is intended to identify additional step out locations on the eastern extension
of this pool for drilling later in 2015 and 2016.
Capital Expenditures
Crown Point estimates a total of $11.5 million of capital expenditures for 2015, comprised of $9 million on
the TDF concessions and $2.5 million on the Cerro de Los Leones concession. Crown Point expects to
meet these obligations, along with its other anticipated expenses, from funds flow from continuing
operations, working capital (which totaled approximately $2.6 million at the end of Q4 2014) and $8.5
million of proceeds received subsequent to Q4 2014 from the completion of the second tranche of the
Strategic Financing.
Management is taking a prudent approach to discretionary spending and will continue to review the
Company’s cost structure to reduce expenses and improve efficiencies where possible.
Board Changes
The Company announces that Mr. Carlos Olivieri has retired from the Company's board of directors. The
Company thanks Mr. Olivieri for his many years of wise counsel. Dr. Brian Moss has also stepped down
from the board of directors to ensure that the board continues to have a majority of directors who are
independent of management and the Strategic Investors. Dr. Moss continues to serve as the Company's
Executive Vice President and Chief Operating Officer.
SUMMARY FINANCIAL INFORMATION
(expressed in $, except shares
outstanding)
Working capital
Exploration and evaluation assets
Property and equipment
Total assets
December 31,
2014
2,575,201
14,828,994
29,063,224
57,569,312
December 31,
2013
15,049,226
10,350,417
32,029,851
64,868,464
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(1)
Non-current financial liabilities
Share capital
Total common shares outstanding
1,451,658
107,575,856
130,480,926
(expressed in $, except shares
outstanding)
Three months ended
December 31,
2014
2013
Oil and gas revenue
Petroleo Plus Credits
Net loss from continuing operations
(2)
Net loss per share – continuing operations
Net loss from discontinued operations
Net loss per share from discontinued
(2)
operations
Net loss
(2)
Net loss per share
Funds flow from (used by) continuing
(2)
operations
Funds flow per share – continuing operations
Weighted average number of shares
(1)
(2)
3,942,392
101,334,798
104,515,222
Year ended
December 31,
2014
2013
3,099,203
–
(3,318,889)
(0.03)
–
4,260,729
–
(2,011,465)
(0.02)
(1,631,485)
13,793,035
363,539
(6,989,342)
(0.07)
(8,446,525)
15,686,650
–
(6,324,403)
(0.06)
(8,666,858)
–
(0.02)
(0.08)
(0.08)
(3,318,889)
(0.03)
(1,024,457)
(0.01)
107,902,053
(3,642,950)
(0.03)
(1,078,900)
(0.01)
104,515,222
(15,435,600)
(0.15)
841,565
0.01
105,368,889
(14,991,261)
(0.14)
(212,155)
(0.00)
104,515,222
Non-current financial liabilities are comprised of bank debt. The total amount outstanding at December 31, 2014 is $4,748,908
of which $3,297,250 is classified as current and $1,451,658 is long-term (2013 – $4,113,800; $171,408 current and
$3,942,392 long-term).
All per share figures are based on the basic weighted average number of shares outstanding in the period. The effect of
options is anti-dilutive in loss periods. Per share amounts may not add due to rounding.
TDF Pricing
As shown in the table below, although the Company received higher unit prices for oil, NGL and natural
gas in Q4 2014, total revenue per BOE declined by 15% from the 2013 comparative quarter due primarily
to a decrease in oil sales volumes.
Light oil revenue per bbl ($)
NGL revenue per bbl ($)
Natural gas revenue per Mcf ($)
Revenue per BOE ($)
Three months ended
December 31
2014
2013
77.30
74.88
24.39
20.88
3.54
3.38
26.00
30.45
Change
+3%
+17%
+5%
-15%
TDF Sales and Production Volumes
During Q4 2014, average daily sales volumes were 1,296 BOE per day, down 3% from 1,336 BOE per
day in Q3 2014 and down 15% from 1,521 BOE per day in Q4 2013 due to natural decline rates from
existing wells.
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TDF average daily production volumes for Q4 2014 averaged 1,393 BOE per day, up 9% from 1,281 BOE
per day in Q3 2014 due to three new wells brought on production in the fourth quarter and down 6% from
Q4 2013 due to natural declines from existing wells.
General and Administrative (“G&A”) Expenses
G&A expenses increased by 16% from Q3 2014 due to fees related to year-end regulatory filing
requirements, but decreased 28% from Q4 2013 due to lower salaries, benefits and travel costs.
RESERVES
Gaffney Cline & Associates Inc. (“Gaffney Cline”), an independent qualified reserves evaluator,
evaluated the oil and natural gas reserves attributable to all of Crown Point’s properties as at December
31, 2014 based on forecast prices and costs and in accordance with NI 51-101 and the Canadian Oil and
Gas Evaluation Handbook. Gaffney Cline’s evaluation also presents the estimated net present value of
future net revenue of Crown Point. Gaffney Cline’s report on Crown Point’s oil and gas reserves and net
present values as at December 31, 2014 is summarized below:
SUMMARY OF RESERVES
as of December 31, 2014 compared to December 31, 2013
(Forecast Prices & Costs)
Reserves Category
Company
Gross
Oil and Liquids
(Mbbls)
Company
Gross
Natural Gas
(Mmcf)
Proved developed producing
Proved developed non-producing
Proved undeveloped
Total proved
Total probable
2014
451
68
225
744
281
2013
364
202
265
830
783
Change
24%
-66%
-15%
-10%
-64%
2014
13,115
167
10,882
24,164
5,903
2013
7,646
319
7,651
15,616
9,184
Change
72%
-48%
42%
55%
-36%
Total proved plus probable
Total possible
Total proved plus probable plus possible
1,025
0
1,025
1,613
924
2,537
-37%
-100%
-60%
30,067
303
30,370
24,800
5,200
30,000
21%
-94%
1%
Reserves Category
Proved developed producing
Proved developed non-producing
Proved undeveloped
Total proved
Total probable
Total proved plus probable
Total possible
Total proved plus probable plus possible
Company
Gross
Total Reserves
MBOE
2014
1,772
108
1,641
4,771
1,265
6,036
0
6,036
2013
1,638
255
1,540
3,433
2,313
5,746
1,791
7,537
Change
8%
-58%
7%
39%
-45%
5%
-100%
-20%
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SUMMARY OF NET PRESENT VALUE OF FUTURE NET REVENUE
as of December 31, 2014
(Forecast Prices & Costs)
Reserves Category
Proved developed producing
Proved developed non-producing
Proved undeveloped
Total proved
Total probable
Total proved plus probable
Total possible
Total proved plus probable plus possible
Net Present Value of Future Net Revenue Before Income Taxes
Discounted at (% / year)
0%
M$
32,460
4,007
55,442
91,910
46,441
138,351
1,849
140,200
5%
M$
27,626
3,240
40,359
71,225
31,149
102,374
1,279
103,653
10%
M$
23,992
2,692
29,982
56,666
21,303
77,969
897
78,866
15%
M$
21,190
2,288
22,635
46,113
14,777
60,890
658
61,548
20%
M$
16,980
1,981
17,301
38,262
10,374
48,636
486
49,122
(1)
“Possible reserves” are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that
the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
(2)
The estimated net present values of future net revenues disclosed do not represent fair market value.
(3)
2013 reserves figures are derived from the reserves report dated March 7, 2014 evaluating the oil and natural gas reserves of the Corporation
as at December 31, 2013 as prepared by McDaniel & Associates Consultants Ltd.
Sales of oil and natural gas during the year ended December 31, 2014 were 515,333 BOE, comprised of
105,000 bbls of oil and liquids and 2.462 Bcf of natural gas.
Reserve volumes and net present values of Crown Point’s reserves were impacted by several factors
including the sale of its 50% interest in the El Valle Exploitation Concession (“El Valle“): Crown Point’s
independent reserves report dated effective December 31, 2013 assigned El Valle gross proved
developed producing reserves of 90.2 MBOE; total gross proved reserves of 289.8 MBOE; and total
gross proved plus probable reserves of 777.2 MBOE. Extensions and improved recovery, positive
technical revisions and discoveries more than offset production, resulting in a 39% increase in total gross
proved reserves at December 31, 2014 compared to as at December 31, 2013. Overall, total proved and
probable reserves increased 290 MBOE, or 5%, at December 31, 2014 compared to as at December 31,
2013. Net present values were impacted by increased pricing and inflation rate assumptions for all
product types.
Further details of the evaluation of the Company’s reserves as at December 31, 2014 will be contained in
the Company’s NI 51-101 filings for the year ended December 31, 2014 which will be filed with Canadian
securities regulatory authorities and will be made available under the Company’s profile at
www.sedar.com and on the Company’s website at www.crownpointenergy.com
For inquiries please contact:
Murray McCartney
President & CEO
Ph: (403) 232-1150
Crown Point Energy Inc.
Arthur J.G. Madden
Vice-President & CFO
Ph: (403) 232-1150
Crown Point Energy Inc.
Suite 1600, 700 – Sixth Ave. S.W., Calgary, Alberta, Canada T2P 0T8 T 403.232.1150 F 403.232.1158 www.crownpointenergy.com
[email protected]
[email protected]
Brian J. Moss
Executive Vice-President & COO
Ph: (403) 232-1150
Crown Point Energy Inc.
[email protected]
Website: www.crownpointenergy.com
About Crown Point
Crown Point Energy Inc. is an international oil and gas exploration and development company
headquartered in Calgary, Canada, incorporated in Canada, trading on the TSX Venture Exchange and
operating in South America. Crown Point’s exploration and development activities are focused in the
Golfo San Jorge, Neuquén and Austral basins in Argentina. Crown Point has a strategy that focuses on
establishing a portfolio of producing properties, plus production enhancement and exploration
opportunities to provide a basis for future growth.
Advisory
Certain Oil and Gas Disclosures: Barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A
boe conversion ratio of six thousand cubic feet (6 Mcf) to one barrel (1 bbl) is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
In addition, given that the value ratio based on the current price of crude oil in Argentina as compared to the current
price of natural gas in Argentina is significantly different from the energy equivalency of 6:1, utilizing a conversion on
a 6:1 basis may be misleading as an indication of value. “MBOE” means thousands of barrels of oil equivalent.
“BOEPD” means barrels of oil equivalent per day. “Mcf” means thousand cubic feet. “Mmcf” means million cubic
feet. “Bcf means billion cubic feet. “Mbbls” means thousands of barrels.
Non-IFRS Measures: This press release discloses “funds flow from operations” which does not have standardized
meanings under International Financial Reporting Standards (“IFRS”) and as such may not be comparable with the
calculation of similar measures used by other entities. Funds flow from operations should not be considered an
alternative to or more meaningful than, cash flow from operating activities as determined in accordance with IFRS as
an indicator of the Company’s performance. Management uses funds flow from operations to analyze operating
performance and considers funds flow from operations to be a key measure as it demonstrates the Company’s ability
to generate cash necessary to fund future capital investment. A reconciliation of funds flow from operations to cash
flow from operating activities is presented in the MD&A under “Non-IFRS Measures”.
Forward looking information: Certain information set forth in this document, including: timing and details with respect
to the Company's ongoing 8 well drilling program at TDF; timing for additional work on its LF-1028 well; preliminary
assessments of the results of certain of the Company's drilling operations; matters with respect to the extension of the
Cerro de Los Leones Permit, the terms of the Agreement with the province of Mendoza and the expected timing for
receipt of ministerial approval of the same; expectations with respect to the new gas incentive program; various
statements under the heading "Outlook", including anticipated work at the Company's LF-1028 well, fracture
operations at TDF, possible future operations and work at its Rio Cullen or Angostura concessions and possible reentry operations of certain wells at Cerro de Leones concession; the Company's anticipated capital expenditures for
2015, including the source of funds to finance such expenditures; and the acreage to be relinquished at Cerro de Los
Leones and the other terms relating to the extension of such permit to become effective on May 22, 2015 is
considered forward-looking information, and necessarily involve risks and uncertainties, certain of which are beyond
Crown Point’s control. In addition, information relating to reserves is deemed to be forward-looking information, as it
involves the implied assessment, based on certain estimates and assumptions, that the reserves described can be
economically produced in the future. Such risks include but are not limited to: risks associated with oil and gas
exploration, development, exploitation, production, marketing and transportation; risks associated with ministerial
approval of the Agreement (including with respect to the timing of such approval and the terms thereof); risks
associated with operating in Argentina, including risks of changing government regulations (including the adoption of,
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amendments to, or the cancellation of government incentive programs or other laws and regulations relating to
commodity prices, taxation, currency controls and export restrictions, in each case that may adversely impact Crown
Point), expropriation/nationalization of assets, price controls on commodity prices, inability to enforce contracts in
certain circumstances, the potential for a sovereign debt default or a hyperinflationary economic environment, and
other economic and political risks; loss of markets and other economic and industry conditions; volatility of commodity
prices; currency fluctuations; imprecision of reserve estimates; environmental risks; competition from other producers;
inability to retain drilling services; incorrect assessment of value of acquisitions and failure to realize the benefits
therefrom; delays resulting from or inability to obtain required regulatory approvals; the lack of availability of qualified
personnel or management; stock market volatility and ability to access sufficient capital from internal and external
sources; and economic or industry condition changes. Actual results, performance or achievements could differ
materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can
be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so,
what benefits that Crown Point will derive therefrom. In addition, the information relating to reserves is deemed to be
forward-looking information, as such information involves the implied assessment, based on certain estimates and
assumptions that the reserves described can be economically produced in the future. With respect to forward-looking
information contained herein, the Company has made assumptions regarding: the impact of increasing competition;
the general stability of the economic and political environment in Argentina; the timely receipt of any required
regulatory approvals (including with respect to the Agreement and the timing thereof); the ability of the Company to
obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the costs of
obtaining equipment and personnel to complete the Company’s capital expenditure program; the ability of the
operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective
manner; the ability of the Company to obtain financing on acceptable terms when and if needed; field production
rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition,
development and exploration activities; the timing and costs of pipeline, storage and facility construction and
expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices;
currency, exchange and interest rates; the regulatory framework regarding royalties, commodity price controls,
import/export matters, taxes and environmental matters in Argentina; and the ability of the Company to successfully
market its oil and natural gas products. Additional information on these and other factors that could affect Crown
Point are included in reports on file with Canadian securities regulatory authorities, including under the heading “Risk
Factors” in the Company’s annual information form, and may be accessed through the SEDAR website
(www.sedar.com). Furthermore, the forward-looking information contained in this document are made as of the date
of this document, and Crown Point does not undertake any obligation to update publicly or to revise any of the
included forward looking information, whether as a result of new information, future events or otherwise, except as
may be expressly required by applicable securities law.
Analogous Information: Certain information contained herein is considered "analogous information" as defined in
National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Such analogous
information has not been prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation
Handbook and Crown Point is unable to confirm whether such estimates have been prepared by a qualified reserves
evaluator. In particular, this news release describes the prospective Cerro de Los Leones concession as being
surrounded by several large conventional oil pools. Such information is not intended to represent projections of future
results. Such information has been presented to show the presence of oil and gas resources in areas analogous to
Crown Point's areas of interest. Such information is based on independent public data and public information
received from other producers and Crown Point has no way of verifying the accuracy of such information and cannot
determine whether the source of the information is independent. Such information has been presented to help
demonstrate the basis for Crown Point's business plans and strategies. There is no certainty that such results will be
achieved by Crown Point and such information should not be construed as an estimate of future reserves or
resources or future production levels.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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